Practical Real Estate Law , Fifth Edition

699 Pages·2007·10.89 MB·english

by  Daniel F. Hinkel

Practical
Real Estate
Law
Fifth Edition
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Practical
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Fifth Edition
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Contents
Preface xv Corporation 33
General Partnership 33
Limited Partnership 33
Chapter 1
Limited Liability Company 34
INTRODUCTION TO THE LAW
OF REAL PROPERTY 1 Summary 34
Key Terms 34
Real Property Law 2
Review Questions 34
Laws That Govern Real Property Transactions 2
Case Problems 35
Real Property versus Personal Property 2
Practical Assignment 35
Physical Elements of Real Property 3
Addendum 35
Case: Ex Parte Brown 6
Community Property Agreement 36
Ownership of Real Property 7
Co-ownership Chart 38
Methods of Acquiring Ownership to Real Property 7
Endnote 35
Inheritance and Devise 7
Gift 8
Contract and Sale 9
Chapter 3
Adverse Possession 9
SURVEYS AND LAND DESCRIPTIONS 39
History of American Real Property Law 10
The Survey 40
Modern-Day Estates in Real Property 11
Preparation of Surveys and Survey Standards 41
Role of Legal Assistant in Real Estate
Land Descriptions 42
Legal Practice 14
Government Rectangular Survey Description 42
Research Materials for Real Property Law 15
Platted Description 46
Ethics: Introduction 16
Metes and Bounds Description 47
Summary 16
Practice Tips for Reviewing a Survey 52
Key Terms 17
Ethics 54
Review Questions 17
Summary 54
Case Problems 17
Key Terms 55
Practical Assignments 17
Review Questions 55
Endnotes 18
Practical Assignments 55
Addendum 55
Chapter 2 Platted Description Survey 56
CONCURRENT OWNERSHIP 19 Metes and Bounds Description
Types of Concurrent Ownership 20 (Including Curves with Descriptions) 57
Joint Tenancy with Right of Survivorship 20 Metes and Bounds with Use of Interior Angles 58
Tenancy in Common 21 Metes and Bounds Survey—E. Ponce de
Tenancy by the Entirety 23 Leon Property 59
Community Property 24 Metes and Bounds Survey—Mohawk
Agreements of Contenancy 26 Trail Property 60
Concurrent Ownership and the Role of Metes and Bounds Survey—West Pine
the Legal Assistant 32 Valley Road Property 61
Ethics 32 Metes and Bounds Survey with Legal
OtherLegal Entities 33 Description—Willow Creek Property 62
vii
viii CONTENTS
ALTA/ACSM 2005 Survey Standards 63 Chapter 6
Survey Review Checklist 69 CONTRACTS 118
Requirements of a Valid Contract 119
Chapter 4 Legal Capacity to Contract 119
PUBLIC REGULATION AND Mutual Agreement 122
ENCUMBRANCES 71 Consideration 124
Public Regulation 72 Lawful Purpose 124
Zoning 72 Written Agreements 124
Building Codes and Subdivision Regulations 73 Remedies for Breach of a Real Estate Contract 125
Environmental Protection Laws 73 Specific Performance 125
Case: Shackford & Gooch, Inc. et al. v. The Town Money Damages 125
of Kennebunk et al. 74 Rescission 126
Environmental Law on the Internet 78 Liquidated Damages 127
Power of Eminent Domain 78 Real Estate Broker 127
Taxation 78 Agency Relationship 127
Federal and State Income Tax Liens 79 Case: Southeastern Land Fund, Inc. v. Real
Private Encumbrances 80 Estate World, Inc. 128
Judgment Liens 80 Services Provided by a Real Estate Broker 130
Mechanics’ and Materialmen’s Liens 80 Listing Agreements 131
Mortgages and Trust Deeds 81 Open Listing 136
Easements 81 Exclusive Listing 136
Restrictive Covenants 81 Exclusive Right-to-Sell Listing 136
Ethics 82 Real Estate Brokers and the Internet 136
Summary 82 Taxation and the Sale of Real Property 137
Key Terms 83 Federal Income Tax 137
Review Questions 83 Federal Income Tax on the Sale of a Home 137
Practical Assignments 83 Federal Income Tax on the Sale of
Addendum 83 Commercial Property 138
R-4 Single-Family Residential Ethics 139
District Regulations 84 Summary 139
C-1 Community Business District Regulations 87 Key Terms 140
Townhouse Restrictions 91 Review Questions 140
Case Problems 140
Practical Assignments 141
Chapter 5
EASEMENTS AND LICENSES 101
Easements 102 Chapter 7
Creation of Easements 103 PREPARATION AND REVIEW OF
A REAL ESTATE CONTRACT 142
Case: Russakoff v. Scruggs 108
Termination of Easements 110 Sydney’s Real Estate Contract 143
Licenses 111 Elements in a Real Estate Contract 144
Practice Tips for the Legal Assistant 111 The Parties 144
Ethics 112 Consideration 145
Summary 112 The Agreement 145
Key Terms 112 The Property 145
Review Questions 112 The Price 146
Case Problems 113 The Method of Payment 147
Practical Assignments 113 Quality of Title 148
Addendum 113 Possession of the Property 149
Sanitary Sewer Easement and Ingress Closing or Settlement 149
and Egress Easement 114 Closing or Settlement Documents 150
Electric Power Company Proration, Closing Costs, and
Right-of-Way Easement 116 Financial Adjustments 151
CONTENTS ix
Condition of the Property and Risk of Loss 152 Case: Lunsford v. King 216
Earnest Money 153 Limited (Special) Warranty Deed 216
Brokers 154 Quitclaim Deed 217
Survival 155 Executor’s and Administrator’s Deeds 217
Assignment of Contract 155 Trustee Deeds 217
Time Is of the Essence 156 Basic Requirements of a Valid Deed 218
Warranties of the Parties 156 Written Instrument 218
Contingencies 158 Competent Grantor 218
Definitions 158 Identity of the Grantee 218
Default 158 Words of Conveyance 218
Notice 158 Description of the Property 218
Entire Agreement 159 Consideration 219
Applicable Law 159 Signature of Grantor 219
Additional Provisions 159 Witnesses of Deeds 219
Offer and Acceptance 159 Delivery to Grantee 219
Execution 160 Preparation of a Valid Deed 219
Caveat Emptor and the Seller Disclosure Form 161 Caption 220
Special Commercial Contract Issues 161 Premises or Preamble 221
Description of the Property 161 Granting Clause 221
Representations, Warranties, and Covenants 162 Description 221
Purchaser’s Inspection or “Free Look” 162 Habendum 221
Closing Documents 163 Warranty Clause 221
Rent Prorations 165 Testimonium 221
Lease Commissions 166 Completing Sections of a Deed 221
Security Deposits 166 Preamble 221
Seller’s Covenants Regarding Operation Granting Clause 223
of Property 167 Description 223
Hazardous Materials 167 Testimonium 224
Indemnification 168 Practical Exercises in Deed Preparation 225
Seller’s Disclaimer of Warranty 169 Correction of Deeds 229
Options 169 Reformation and Cancellation of Deed 229
Contracts and Computers 169 Practical Tips for the Legal Assistant 229
Ethics 173 Grantor 229
Summary 174 Grantee 231
Key Terms 174 Legal Description 231
Review Questions 174 Witnessing a Deed 231
Case Problems 175 Ethics 232
Practical Assignments 175 Summary 232
Addendum 176 Key Terms 233
Contract for Purchase and Sale of a Home 177 Review Questions 233
Contract for Purchase and Sale of a Large Case Problems 233
Tract of Vacant Land 184 Practical Assignments 234
Seller’s Property Disclosure Statement 190 Addendum 234
Contract for Purchase and Sale of a General Warranty Deed—North Carolina 235
Retail Shopping Center 195 General Warranty Deed—Texas 237
Option to Purchase 211 Warranty Deed (Joint Tenancy)—Illinois 239
Limited Warranty Deed—Georgia 240
Grant Deed—California 241
Chapter 8 Quitclaim Deed—Georgia 243
DEEDS 212 Quitclaim Deed—California 244
Historical Development of Deeds 213 Executor’s Deed—New York 245
Types of Deeds 214 Administrator’s Deed—Georgia 247
General Warranty Deed 214 Trustee Deed—Georgia 248